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WEDNESDAY Eight things you need to know with 12 months of financial turbulence ahead
Leopard print sandal, debenhams.com BREXIT has made us all nervous but it’s not the only money matter you need to be prepared for this year.
“Uncertainty and change are a part of life and we’ll be better placed to ride these waves if we’re prepared for whatever may come next,” said Alistair McQueen, head of savings and retirement at Aviva.
“We will all benefit from a couple of hours to prepare our finances for whatever 2019 may bring.”
So what can you do to help get prepared? Here, McQueen highlights some of the key 2019 money moments to get ready for... GET READY FOR THE RISING STATE PENSION AGE In 2018, the state pension age for men and women was equalised at 65. Men and women will now experience a state pension age rising in tandem.
The state pension continues to represent most people’s biggest source of income in retirement. So in 2019, it could be a good idea to request a free state pension forecast from the Government to understand when you will be entitled to yours and how much you may receive (gov.uk/checkstate-pension). GET READY FOR A LONGER WORKING LIFE Last year, the number of people in work over the age of 50 reached a record 10million. As our life expectancy rises, we can expect this trend to continue.
Aviva expect one in three workers in the UK will be over the age of 50 in the next decade. So it may be worth starting to re-frame your expectations towards a longer working life.
Aviva are launching a service BY reporters@dailyrecord.co.uk called the “mid-life-MOT” to help prepare for that. GET READY FOR AN INCREASE IN PENSION PAYMENTS Employers have duties to provide a workplace pension. Since 2012, automatic enrolment has introduced nearly 10million new savers across the UK to pensions.
This April, the minimum pension payment will increase from five per cent of your earnings to eight per cent. At least three per cent of it must come from your employer.
A workplace pension can be a valuable way of saving for later life, so in 2019, think about preparing for this increase in payments. GET READY FOR POTENTIAL FURTHER INTEREST RATE INCREASES After a near decade of record low interest rates, the Bank of England increased their base rate to 0.75 per cent last year. Many commentators expect 2019 could see further small increases in the base rate in a bid to ease price inflation.
That would be good news for savers but not so good for the millions of borrowers holding short-term loans and mortgages. So in 2019, it would be a good idea to shop around for the best saving and borrowing rates. A small change could make a big difference. GET READY FOR MORE PEOPLE TAKING UP PENSION FREEDOMS The new pension freedoms for over-55s are hugely popular. More than £20billion has been withdrawn from private pensions in new flexible payments.
If you’re over 50 and considering your options, consult the Government’s free Pension Wise service for guidance (pensionwise.gov.uk). GET READY FOR MORE WAYS TO MANAGE YOUR MONEY ONLINE Most pension and investment providers offer free online services to help you manage your money. So in 2019, consider taking advantage of these services. GET READY FOR THE NEW FACE OF THE BANK OF ENGLAND £50 NOTE The face on the new note will be announced in the summer. The bank say it will be someone who has contributed to science. GET READY FOR THE LONG GAME Because of the global trade war and Brexit, 2019 looks set to be a time of volatility. It is helpful to remember that investments are typically designed to navigate at least a five-year horizon, or up to 40 years if it’s our investment in our retirement.
So in 2019, it’s a good idea to remember those longer-term goals.